Abstract
We revisit the impact of legal origin on financial development using propensity score matching and a new financial development index on a sample of 178 countries over 1980-2016. German civil law countries are found to have the strongest positive impact on financial development. English common law countries follow. French and Scandinavian civil law countries have a negative impact on financial development while Socialist legal origin records no significant effect. When decomposing the measure of financial development into financial markets and financial institutions development, we find that German civil law promotes both while English common law only financial institutions development.
| Original language | English |
|---|---|
| Article number | IJFE2167 |
| Pages (from-to) | (In-Press) |
| Journal | International Journal of Finance and Economics |
| Volume | (In-Press) |
| DOIs | |
| Publication status | Accepted/In press - 30 Jun 2020 |
Keywords
- Legal origin
- financial development
- financial markets
- financial institutions
- Propensity score matching
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Cite this
De Vita, G., Li, C., & Luo, Y. (Accepted/In press). Legal origin and financial development: A propensity score matching analysis. International Journal of Finance and Economics, (In-Press), (In-Press). [IJFE2167]. https://doi.org/10.1002/ijfe.2167